Infinite Reality, a company specializing in three-dimensional content technology, has announced the acquisition of Napster for a staggering $207 million. The rationale behind this purchase, as explained by Infinite Reality, is to leverage the Napster brand for marketing purposes.
Napster, a P2P file-sharing service that rose to popularity in 1999 primarily for sharing music files, faced legal challenges from various music labels, leading to its closure in 2002. Since then, Napster has changed ownership multiple times, with the latest owner being the blockchain company Algorand.
John Acunto, CEO of Infinite Reality, envisions a virtual reality platform where users can enjoy music and watch concerts online together. The revenue model will involve collaborations with music labels and artists to sell their work and merchandise on the platform. This strategic move with the Napster brand is expected to generate interest and power for the company.
Although Infinite Reality’s latest business venture is valued at $1.225 billion, the company has chosen not to disclose the names of the investors involved.
Source: CNBC
TLDR: Infinite Reality acquires Napster for $207 million to utilize its brand for targeted marketing efforts. The company aims to create a virtual reality platform for immersive music experiences while collaborating with music labels and artists.
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